Sullivan & Cromwell, Gibson Dunn Guide Musk’s SpaceX, xAI Merger (1)

Lawyers from Sullivan & Cromwell and Gibson Dunn & Crutcher steered the combination of two Elon Musk companies as SpaceX acquired artificial intelligence startup xAI.

Mike Ringler, head of Sullivan & Cromwell’s M&A technology group, and Peter Jones advised on the deal for xAI, according to the firm. Gibson Dunn’s George Sampas, the New York-based co-chair of its M&A group, and Dallas-based M&A co-chair Robert Little led the team representing SpaceX.

The transaction, announced Monday, is the latest in a string of deals that S&C has steered for Musk companies since Silicon Valley partners Ringler and Jones joined the firm from Skadden in 2024. Ringler was a lead lawyer for Musk’s 2022 $44 billion purchase of Twitter, the social media company he later renamed X. Ringler and Jones led the team that advised Musk, xAI, and X on its $100 billion merger.

The SpaceX-xAI deal gives the combined company a valuation of $1.25 trillion. The company is still expected to go public later this year, a move that could raise as much as $50 billion, according to Bloomberg News.

Gibson Dunn partners Chris Trester, Evan D’Amico, and Hillary Holmes also advised on the deal. The firm, along with lawyers from HWG LLP, acted as legal counsel to SpaceX, which owns the Starlink satellite internet network, in its $17 billion buy of EchoStar Corp.'s wireless spectrum in September.